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Klondex To Reduce Underground Mining At True North

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Klondex Mines Ltd. (TSX: KDX; NYSE American: KLDX) says it is scaling back operations at its True North mine in Manitoba, with plans to eventually halt mining. After study, Klondex says it will limit underground mining to areas already developed, and once these are depleted, underground mining will be suspended. Officials say the decision was largely based on the site’s inability to achieve planned operating and cash flow metrics in 2017. Preliminary 2017 gold ounce production from True North is estimated to be 24,000 to 27,000 ounces, which is less than guidance of 35,000 to 45,000 ounces. The mine will be placed on care-and-maintenance status after the developed areas are mined to review strategic options and to provide an option in the event of higher metal prices, Klondex says. However, the company will continue to process tailings through the mill for the foreseeable future in order to maximize cash flow and offset expected care-and-maintenance costs. “We regret the implications these actions will have on our workforce and other stakeholders but must ensure the long-term sustainability of the company,” says Paul Huet, president and chief executive officer. “True North and the recently acquired Bison Gold Resource properties continue to be valuable assets, and we are taking the necessary steps to build the foundation for their long-term success within the Klondex portfolio.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Teranga: Record 2017 Gold Output Exceeds Guidance

Wednesday January 10, 2018 09:11

Teranga Gold Corp. (TSX: TGZ) reports record gold production of 233,267 ounces in 2017, exceeding the high end of the guidance range of 205,000 to 225,000 ounces. Combined with higher prices, this means Teranga ended the year with $88 million in cash, up $15 million from Sept. 30, the company says. This enables Teranga to finance its next mine, Banfora, which has been renamed Wahgnion to reflect the wishes of the local community, the company says. Early works activities at Wahgnion are occurring, with the start of mill construction anticipated in the second quarter. "Our operational focus on generating free cash flow at Sabodala is paying off,” says Richard Young, president and chief executive officer, commenting that output was a record for the second straight year. For 2018, the company forecast gold production at Sabodala at between 210,000 and 225,000 ounces of gold. Officials say this compares favorably to the 2018 estimate of 213,000 ounces that was outlined in the 2017 Sabodala 43-101 technical report filed in August.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Premier, Barrick Sign Nevada-Focused Exploration Agreement

Wednesday January 10, 2018 09:11

Premier Gold Mines Ltd. (TSX: PG) says it has entered into an exploration and development agreement with Barrick Gold Corp. (NYSE, TSX: ABX) for properties in Nevada. Under the deal, as outlined by Premier, Barrick will have an option to earn a 60% interest in the exploration portion of Premier’s McCoy-Cove property by spending $22.5 million in exploration before June 30, 2022. However, Premier will retain 100% ownership over the Cove Deposit portion of the McCoy-Cove property that includes the high-grade Helen, 2201 and CSD/CSD Gap deposits. Premier will secure a one-time bulk sample processing arrangement for the planned test-mining program at its 100%-owned portion of the McCoy-Cove property. Also, Premier will have an option to acquire a 100% interest in Barrick’s Rye Vein property, subject to a back-in right by Barrick, by spending $3 million in exploration before Dec. 31, 2019. “The agreement with Barrick will expand and accelerate the regional exploration at McCoy-Cove while Premier retains full ownership of the core deposit,” says Ewan Downie, president and chief executive officer of Premier on the company’s C-Suite Blog. “Our option to earn a 100% interest in the Rye project provides exposure to one of the highest potential epithermal vein projects in a world-class mining jurisdiction.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Centamin: 2017 Output Tops Guidance; Rise Expected In 2018

Wednesday January 10, 2018 08:44

Centamin Plc (LSE: CEY; TSX: CEE) reports that output at its Sukari Gold Mine in Egypt rose last year and is expected to do so again in 2018. The company says preliminary data shows 2017 production of 544,658 ounces, above guidance of 540,000 ounces. Fourth-quarter gold production was 154,298 ounces, a 1.4% reduction quarter-on-quarter and a 12.8% increase year-on-year. “All sections of the mine continued to perform well, maintaining strong operational momentum throughout the fourth quarter, which we look forward to building on in 2018,” says Andrew Pardey, chief executive officer. “With underground development expected to allow a further improvement in sustainable underground production rates, consistent open-pit mill feed grades and an increase in plant throughput, we look forward to delivering solid growth in 2018 with gold production guidance of 580,000 ounce at a cash cost of $555/oz and an all-in sustaining cost of $770/oz, resulting in significant free cash flow for our shareholders.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Guyana Goldfields Reports Record Quarterly Gold Output

Wednesday January 10, 2018 08:44

Guyana Goldfields Inc. (TSX: GUY) says it achieved record quarterly gold production of 48,900 ounces at its Aurora mine in Guyana, South America, during the fourth quarter. Full-year output was 160,500 ounces, achieving the lower end of production guidance, the company says. "The fourth quarter was the strongest quarter for gold production in the company's history, despite undergoing four scheduled down days in November for a mill liner change,” says Scott A. Caldwell, president and chief executive officer. “The operational improvements and capital investments made throughout the year in the mining fleet, bulk emulsion delivery system, and logistics haulage fleet are yielding operational efficiencies which are expected to translate to lower unit costs in the fourth quarter.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Endeavour Silver Achieves Revised 2017 Guidance

Wednesday January 10, 2018 08:44

Endeavour Silver Corp. (TSX: EDR, NYSE: EXK), which operates three mines in Mexico, says output rose in the October-December period for the third straight quarter and the company achieved its revised full-year guidance. Output in 2017 totaled 4.9 million ounces of silver and 53,007 ounces of gold, meeting the company’s revised guidance on silver and exceeding revised guidance on gold, although output of each was down from 2016. Silver-equivalent production totaled 8.9 million ounces at a 75-to-1 silver-gold ratio, approaching the top end of revised guidance. For the fourth quarter, silver production was 1,436,962 ounces and gold production was 14,577 ounces for silver-equivalent production of 2.5 million ounces, marking the third consecutive quarter of improved production and a 30% increase over the fourth quarter of 2016, the company says. "In 2017, silver-equivalent production met the low end of our original guidance and the high end of our revised guidance, notwithstanding several operating challenges at the Guanacevi mine,” says Bradford Cooke, chief executive officer. He adds that “our operations team resolved many of those operating issues and they have plans to complete Guanacevi’s recovery to normal operations in 2018. After a tough start to the year in the first quarter, Endeavour posted three consecutive quarters of improved production, making the fourth quarter our best of the year. Ore grades and throughput both improved in the second half. A productivity optimization program is being launched at Guanacevi this month and additional operational improvements are planned this year at Bolanitos and El Cubo….The El Compas mine and plant development project continues to move forward on time and budget, targeting initial production in late March 2018.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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